Inflation worriers and treasury bears take note: Bond yields are falling again. Economy is not as strong as it looks.

The headline GDP was 3.5% but the headline number looks much stronger than it really is. A huge inventory adjustment contributing 2.07 percentage points to the headline number. Government spending was also on the high side, contributing 0.56 percentage points.

A powerful slump in technology and internet stocks spread Friday, putting the S&P 500 in danger of joining the Nasdaq Composite in correction territory as investors continued an October retreat from risky assets.